(1) For the purposes of Section 41 of the Organic Law on Provincial Governments and Local-level Governments, it is declared that this Act relates to a matter of national interest.

(2) This Act, to the extent that it regulates or restricts the exercise of a right or freedom referred to in Subdivision III.3.C (qualified
rights) of the Constitution, namely –

(a) the right to freedom from arbitrary search and entry conferred by Section 44 ; and

(b) the right to freedom of expression and publication conferred by Section 46 ; and

(c) the right peacefully to assemble and associate and to form or belong to, or not to belong to, political parties, industrial organisations
or other associations conferred by Section 47 ; and

(d) the right to freedom of choice of employment in any calling for which a person has the qualifications (if any) lawfully required
conferred by Section 48 ; and

(e) the right to reasonable privacy conferred by Section 49; and

(f) the right to reasonable access to official documents conferred by Section 51,

of the Constitution, is law that is made (pursuant to Section 38 of the Constitution), taking account of the national Goals and Directive Principles and the Basic Social Obligations, in particular the National Goals
and Directive Principles entitled –

(g) national sovereignty and self reliance; and

(h) natural resources and environment,

for the purpose of giving effect to the public interest in public order and public welfare.

(b) any Act that is substituted for or that replaces that other Act; and

(c) any regulations made under any such substitute or replacement Act.

ACT BINDS THE STATE.

(1) This Act binds the State.

(2) Where, by or under any other Act, the Head of State, acting on advice of a Minister or the National Executive Council, may give
directions as to policy, any directions as to policy given to the Authority under this section may not be inconsistent with the provisions
of this Act, the Mining Act 1992 the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that act, or any other Act the administration of which is the responsibility of the Authority
from time to time.

PART 2. – THE MINERAL RESOURCES AUTHORITY .

Division 1.

Mineral Resources Authority..

ESTABLISHMENT OF THE MINERAL RESOURCES AUTHORITY.

(1) The Mineral Recourses Authority is hereby established.

(2) The Authority –

(a) is a body corporate with perpetual succession; and

(b) shall have a common seal; and

(c) may acquire, hold and dispose of property; and

(d) may sue and be sued in its corporate name and style.

(3) The common seal of the Authority may not be affixed to any document or instrument except pursuant to a resolution of the Board.

(4) The affixation of the common seal of the Authority is to be attested by any two member of the Board.

(5) All Courts, Judges and persons acting judicially shall take judicial notice of the common seal of the Authority affixed to a document
and shall presume that it was properly affixed.

(6) Subject to this Act, the Authority is an organ and instrument of the State and is entitled to the benefit of any immunity or privilege
enjoyed by the State.

FUNCTIONS OF THE AUTHORITY.

The functions of the Authority, subject to Section 8(6), are –

(a) to advice the Minister on matters relating to mining and the management, exploitation and development of Papua New Guinea’s
mineral resources; and

(b) to promote the orderly exploitation for the development of the country’s mineral resources; and

(c) to oversee the administration and enforcement of the Mining Act1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, and any other legislation relating to mining or to the management, exploitation
or development of Papua New Guinea’s mineral resources; and

(d) to negotiate mining development contracts under the Mining Act1992 as agent for the State; and

(e) to act as agent for the State, as required, in relation to any international agreement relating to mining or to the management,
exploitation or development of Papua New Guinea’s mineral resources; and

(f) to receive and collect, on its own account and on behalf of the State, any fee, levy, rent, security, deposit, compensation, royalty,
cost, penalty, or other money or other account payable under the Mining Act1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority
from time to time; and

(g) on behalf of the State, to receive and collect from persons to whom a tenement has been granted under the Mining Act 1992 the security for compliance with the person’s obligations under the Mining Act1992 required to be lodged with the Registrar, and to hold and such security received or collected; and

(h) on behalf of the State, to administer and be responsible for the administration of any public investment programme relating to mining;
and

(i) to conduct systematic geo-scientific investigations into the distribution and characteristics of Papua New Guinea’s mineral
and geological resources, located on, within or beneath the country’s land mass, soils, subsoil and the sea –bed;
and

(j) to provide small scale mining and hydro geological survey data services, and occupational health and safety community awareness
programmes; and

(k) to collect, analyse, store, archive, disseminate and publish (in appropriate maps and publications) on behalf of the State geo-scientific
information about Papua New Guinea’s mineral and geological resources; and

(l) to carry out such functions as are given to the Authority by this Act or by any other law; and

(m) generally to do such supplementary, incidental, or consequential acts and things as are necessary or convenient for the Authority
to carry out its functions.

POWERS OF THE AUTHORITY .

The Authority has, in addition to the powers otherwise conferred on it by this Act and any other law, power to do all things necessary
or convenient to be done for or in connection with the performance of its functions.

AUTHORITY NOT A DEPARTMENT.

The Authority is not a Department of the National Public Service.

Division 2.

Mineral Resources Authority Board.

MINERAL RESOURCES AUTHORITY BOARD.

(1) There is established a board for the authority to be called the Mineral Resources Authority Board.

(2) Subject to Subsection (6), the Board is to perform the functions, exercise the powers and manage and direct the administrative
affairs of the authority.

(3) The Minister may, after consultation with, and acting on the advice and recommendation of, the Mining Advisory Council, give to
the Board general or specific directions as to mineral policy.

(4) In the exercise of its functions under this Act, the Board shall act in accordance with, and shall give effect to, any general
or specific directions as to policy given to it from time to time by the Minister under Subsection (3) or the Government Policy
Advisory Committee under Section 21.

(5) Any direction as to policy given by the Minister under Subsection (3) or the Government Policy Advisory Committee under Section 21
may not be inconsistent with the provisions of this Act, the Mining Act 1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority
from time to time.

(6) Notwithstanding anything else in this Act, the Managing Director has the sole right and responsibility, to the exclusion of the
Board, to supervise and direct the staff of the Authority in the exercise of all powers, functions and discretions in respect of
the administration and enforcement of the MiningAct 1992, the Mining Act 1992, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, and any other legislation, regulation or national policy relating to mining or
to the management, exploitation or development of Papua New Guinea’s mineral resources.

MEMBERSHIP OF THE BOARD.

(1) The Board shall consist of not more than nine members comprising –

(a) the Managing Director, ex officio; and

(b) the Department Head of the Department responsible for the finance matters, or his nominee who must occupy a position in the National
Public Services of a level no lower than Deputy Secretary, ex officio; and

(c) the Departmental Head of the Department responsible for treasury matters, or his nominee who must occupy a position in the National
Public Service of a level no lower than Deputy Secretary, ex officio; and

(d) the Departmental Head of the Department responsible for national planning matters, or his nominee who must occupy a position in
the National Public Service of a level no lower than Deputy Secretary, ex officio; and

(e) two persons nominated by the President for the time being of the Papua New Guinea Chamber of Mines and Petroleum; and

(f) two persons nominated by the President for the time being of the Business Council of Papua New Guinea Inc. with professional qualifications
and are members of one or more of –

(i) the Papua New Guinea Law Society established under the Lawyers Act1986; and

(g) the Departmental Head of the Department responsible for the mineral policy matters, or his nominee who must occupy a position in
the National Public Service of a level no lower than Deputy Secretary, ex officio.

(2) A nominee for a non – ex officio member of the Board under Subsection (1) –

(a) shall be considered for appointment in accordance with the Regulatory Statutory Authorities (Appointments to Certain Offices) Act
2004; and

(b) must be ordinarily resident in the country; and

(c) must be of generally recognised standing, experience and expertise in matters relevant to the functions of the Authority, including
(without limitation) mining, mineral exploration, financial management, corporate governance, accounting or law; and

(d) subject to Section 15, shall hold office for a term of two years; and

(e) is eligible for re –appointment.

(3) In considering a nomination of a person as an ex officio member of the Board under Subsection (1) the nominator must have regard to the person’s knowledge, skill and experience.

(4) A reference in Subsection (1) to any organisation or body includes the organisation or body as it may be renamed or reconstituted,
and any successor to the organisation or body.

ELIGIBILITY TO BE A MEMBER OF THE BOARD.

A person may not be appointed as a member of the Board under Section 9 if he –

(a) is or has been bankrupt, or has applied to take the benefit of any law for the benefit of bankrupt or insolvent debitors, or has
compound with his creditors or made assignment of his remuneration for their benefit; or

(b) is 70 years of age or over; or

(c) is standing or to stand trail for, or has been convicted of, any offence punishable under a law by imprisonment ; or

(d) is prohibited from being a director or member or promoter of, or from taking part (in any way, whether directly or indirectly)
in the management of, a company under any law; or

(e) has his affairs administered under any law relating to mental health.

ALTERNATES.

(1) A member of the board appointed under Section 9 may, by a signed instrument in writing delivered to the Authority, appoint
a person who is ordinarily resident in the country to be a member’s alternate.

(2) If a member of the Board appointed under Section 9 is for any reason unable to act, his alternate, if there is any, has and
may exercise all of the member’s powers, function, duties and responsibilities, and this Act applies accordingly.

(3) An alternate may, unless the Board otherwise directs, attend meetings of the Board but may not, except where he id attending in
the absence of the member of the Board for whom he is the alternate, take part in debate, vote on any matter or be counted towards
a quorum.

(4) An alternate is entitled independently to receive all notices, papers, minutes of meetings and other relevant information to which
members of the Board are entitled.

FEES AND EXPENSES OF MEMBERS OF THE BOARD AND ALTERNATES.

(1) As soon as practicable after the coming into operation of this Act, the Board shall recommend to the Minister an appropriate fee
to be paid under the Boards (Fees and Allowances) Act 1955 to each member of the Board, other than an ex officio member, having regard to the functions, duties and responsibilities of the members of the Board under this Act.

(2) Each member of the Board, other than an ex officio member, is to be paid such a fee as the Minister determines after considering the recommendation of the Board under Subsection (1).

(3) The Authority shall pay to each member of the Board reasonable travelling and other expenses incurred in carrying out their duties
under this Act.

(4) An alternate of a member of the Board, other than an ex officio member, shall when attending a board meeting in the place of his appointor, be paid by the Authority the applicable fee and any other
expenses.

CHAIRMAN AND DEPUTY CHAIRMAN.

(1) The Board may from time to time to appoint one of the members of the Board to be the Chairman of the Board, and shall determine
the period for which the member so appointed is to hold office as Chairman of the Board.

(2) The Board may from time to time appoint one of the members of the Board (other than the Chairman) to be the Deputy Chairman of
the Board, and shall determine the period for which the member so appointed is to hold office as Deputy Chairman of the Board.

(3) The Chairman and Deputy Chairman hold office as Chairman and Deputy Chairman respectively until the earlier of the termination
or expiration of the period of their respective appointments or until they cease respectively to be a member of the Board.

LEAVE OF ABSENCE OF MEMBERS.

(1) The Chairman may grant leave of absence to a member of the Board (other than the Deputy Chairman) on such terms and conditions
as the Chairman determines.

(2) The Board may grant leave of absence to the Chairman or Deputy Chairman on such terms and conditions as the Board determines.

VACATION OF OFFICE BY MEMBERS OF THE BOARD.

(1) A member of the Board, other than an ex officio member, may resign his office by writing signed by him and delivered to the Authority.

(2) If a member of the Board, other than an ex officio member –

(a) dies or becomes permanently incapable of performing his duties; or

(b) resigns his office in accordance with Subsection (1); or

(c) is absent, except with the written consent of the board or is on leave of absence under Section 14, from three consecutive
meetings of the board; or

(d) does not comply with Section 19; or

(e) becomes a person who is not eligible under Section 10 to be appointed as a member of the Board; or

(f) ceases to be ordinary resident in the country; or

(g) commits an offence against this Act,

his appointment as a member of the Board (and as Chairman or Deputy Chairman, if the member of the is also the Chairman or Deputy
Chairman) shall be deemed to have been terminated with immediate effect, and shall cease to be a member of the Board accordingly.

(3) The Minister, acting on the advice and recommendation of the Board but not otherwise, may at any time, by written notice, inform
a member of the Board (other than an ex officio member) that he intends to terminate the member’s appointment on the grounds of inefficiency, incapacity or misbehaviour.

(4) Within 14 days after receiving a notice under Subsection (3), the member may reply in writing to the Minister, who must consider
the reply and, where appropriate, terminate the appointment by written notice to the member.

(5) Where the member referred to in Subsection (3)does not reply in accordance with Subsection (4), the Minister may terminate
the member’s appointment by written notice to the member.

VACANCY NOT TO AFFECT POWERS OR FUNCTIONS.

The exercise of a power or the performance of a function of the Board is not invalidated by reason only of vacancy in the membership
of the Board.

SECRETARY OF THE BOARD.

(1) The Board shall appoint an employee of the Authority to be the Secretary of the Board.

(2) The Secretary is responsible for convening meetings of the Board and for recording minutes of those meetings.

MEETINGS OF THE BOARD.

(1) The Board is to meet as often as the business of the Board requires, and at such times and places as the Chairman directs, but
in any event not less frequently than and once in every three months.

(2) Not less than seven days notice in writing of a meeting of the Board, setting out the date, time and placed of the meeting and
the matters to be discussed at the meeting, is to be sent to every member of the Board who is in the country.

(3) An irregularity in the notice of a meeting of the Board is waived where all members of the Board entitled to receive the notice
either attend the meeting without protest as to the irregularity or agree to the waiver.

(4) At a meeting of the Board –

(a) subject to Subsection (7), the Managing Director and five other member constitute a quorum; and

(b) the Chairman, or in his absence the Deputy Chairman is to preside, and if both Chairman and Deputy Chairman are absent, the members
present may appoint, from among their own number a chairman for that meeting; and

(c) subject to Paragraph (e), each member of the Board has one vote; and

(d) subject to Section 28(3)(c), matters arising are to be decided by a majority of the votes of the members present and voting;
and

(e) the person presiding has a deliberative, and if there is an equality of votes on any matter, also a casting vote.

(5) The Board is to cause minutes of its meetings to be recorded and kept.

(6) Subject to this Act, the procedures of the Board are to be as determined by the Board.

(7) At the meeting of the Board at which there is to be consideration of the investigations, suspension or recommendation for dismissal
of the Managing Director under Section 23(4) –

(a) seven members of the Board, other than Managing Director, constitute a quorum; and

(b) if the members present so permit, the Managing Director may be present, but may not vote or participate in any discussion or debate
other than at a time determined by the members present to answer or defend any allegation against him; and

(c) no other business or matter may be transacted, considered or dealt with.

DISCLOSURE OF INTEREST BY MEMBERS OF THE BOARD.

(1) A member of the board who has a direct or indirect interest in a matter being considered or about to be considered by the Board
shall, as soon as possible after the relevant facts have come to his knowledge, disclose the nature of his interest at a meeting
of the Board.

(2) Any disclosure under Subsection (1)) is to be recorded in the minutes of the relevant meeting of the Board, and the member
making the disclosure –

(a) may not participate, after the disclosure, in any debate, deliberation, decision or vote of the Board in relation to the matter
during the meeting at which the disclosure is made or at any other meeting of the Board; and

(b) is to be disregarded for the purpose of determining whether a quorum is present for the meeting of the Board at which the disclosure
is made or at any other meeting of the Board for any such debate, deliberation, decision or vote in relation to the matter.

COMMITTEES OF THE BOARD.

(1) The Board may, from time to time, establish committees of the Board to advise the Board on such matters as the Board considers
necessary.

(2) In establishing a committee under Subsection (1), the Board may –

(a) appoint such persons as it considers necessary.

(b) specify the functions and procedures of the committee.

(3) A member of a committee who is not a member of the Board, an employee of the Authority or an officer of the National Public Service
may receive fees and allowances under the Boards (Fees and Allowances) Act 1955.

GOVERNMENT POLICY AND ADVISORY COMMITTEE.

(1) There is established a permanent committee to be called the Government Policy and Advisory Committee, comprising –

(a) the Departmental Head of the Department responsible for treasury matters who shall be Chairman; and

(b) the Departmental Head of the Department responsible for the national planning matters; and

(c) the Departmental Head of the Prime Minister’s Department.

(2) The functions, powers and responsibilities of the committee are to provide written advice and directions to the Board concerning
policies of the National Government (other than mineral policy) that are relevant to the Authority including, without limiting the
generality of the foregoing, fiscal and budgetary policies and objectives.

(3) The Committees shall meet as often as the Chairman determines.

REPORTS.

The Board is to furnish to the Minister, in addition to the annual report under Section 36, such other reports in relation to
the functions of the Authority as reasonably requested by the Minister from time to time.

Division 3.

Managing Director.

MANAGING DIRECTOR.

(1) There shall be a Managing Director of the Authority who is to be appointed in accordance with the Regulatory Statutory Authorities
(Appointments to Certain Offices) Act 2004.

(2) The Managing Director is –

(a) the Chief Officer of the Authority; and

(b) the Head of the staff of the Authority; and

(c) responsible to the Board for the efficient carrying out of the functions of the Authority; and

(d) responsible to the Minister for the efficient carrying out of the functions of the applicable regulatory functions of the Mining Act 1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, or any other Act the Administration of which is the responsibility of the Authority
from time to time.

(3) Subject to this section, the Managing Director is to be appointed for a term of four years and, subject to the Salaries and Conditions MonitoringCommittee Act 1988, on such terms and conditions as are determined by the Board, and is eligible for appointment.

(b) other than the written consent of the Board, engages in any paid employment or carries on business outside the duties of his office;
or

(c) becomes bankrupt, applies to take the benefits of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors
or makes an assignment of his salary for their benefit; or

(d) is convicted of an offence that is punishable under a law by imprisonment; or

(e) ceases to be ordinarily resident in the country; or

(f) commits an offence against this Act.

(5) If the Managing Director’s appointment is terminated under the Regulatory Statutory Authority (Appointments to Certain Offices)
Act 2004 –

(a) the Managing Director will not be entitled to; and

(b) the Board may not authorise the provision or giving to the Managing Director of, and the Authority may not provide or give to the
Managing Director,

any compensation or payment in respect of the termination of his appointment, and the Authority will not have any liability whatsoever
to the Managing Director in respect of the termination of his appointment, other than in respect of any unpaid remuneration or benefits
attributable to the period before the termination, payable in accordance with the terms and conditions of the Managing Director’s
contract of employment as determined by the Board under Subsection (3).

(6) Any contract, arrangement or understanding under which the Managing Director would, but for this subsection, be entitled to any
compensation or payment in respect of the termination of his appointment other than as provided in Subsection (5) is void ab initio and of no force or effect.

FUNCTIONS OF THE MANAGING DIRECTOR.

(1) The functions, powers and duties of the Managing Director are: –

(a) Subject to Section 8(6), to manage the Authority in accordance with the policies and directions of the Board; and

(b) to advise to Board on any matter concerning the Authority referred to him by the Board; and

(c) otherwise as specified in this Act and the Mining Act 1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, and any other Act the administration of which is the responsibility of the Authority
from time to time.

(2) the Managing Director –

(a) shall carry out and perform the functions, powers and duties required of him under this Act and his contract of employment; and

(b) has such other functions, powers and duties as the Board may from time to time determine.

(3) The Managing Director may, by instrument in writing, delegate all or any of his functions, powers (other than this power of delegation)
or duties to any person and shall forthwith report any such delegation to the Board in writing.

(4) The Minister may, after consultation with, and acting on, the advice and recommendation of the Mining Advisory Council, give to
the Managing Director general or specific directions as to policy.

(5) Any direction as to policy given by the Minister under Subsection (4) may not be inconsistent with the provisions of this
act, the Mining Act 1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, or any other Act the administration of such is the responsibility of the Authority
from time to time.

Division 4.

Staff of the Authority.

STAFF OF THE AUTHORITY.

(1) The Managing Director may appointment persons to be employees of the Authority, in the accordance with procedures established
and approved by the Board, for the purpose of giving effect to this Act and carrying out the functions of the Authority.

(3) The Managing Director may dismiss any employee of the Authority in accordance with procedures established and approved by the
Board.

(4) The Managing Director and the employees appointed under Subsection (1) constitute the staff of the Authority.

(5) The Managing Director is to direct and control the employees of the Authority.

(6) The staff of the Authority (including the Managing Director) are not officers in the National Public Services.

CONTRACT OF EMPLOYMENT.

The Managing Director and each employee of the Authority is to be employed under a contract of employment that –

(a) in the case of the Managing Director, is to be executed by the Authority under its common seal attested by two members of the Board
(not including the Managing Director) and by the Managing Director; and

(b) in the case of any other employee, is to be executed by the Managing Director on behalf of the Authority and by the employee in
accordance with procedures established by the Board.

(1) Without limitation to any function or power of the Authority under this Act, Part VIII (other than Sections 51, 55, 56, 57 and
58) of the Public Finances(Management) Act 1995 applies to and in relation to the Authority.

(1) Moneys of the Authority that are not immediately required may be invested on deposit with an Authorized Institution or in any
manner that a trustee would be authorised to invest funds in his hands under the Trustees and Executors Act 1961, on such terms that the Board, in its discretion, may determine.

(2) Subject to Subsection (3), the Authority may borrow money for its purposes from an Authorized Institution in any manner (including
by overdraft), on such terms and within such limits as the Board, in its discretion, may determine.

(3) The Authority may not borrow money –

(a) if and to the extent that, immediately after the money is borrowed, the total principal amount outstanding of all money borrowed
by the Authority exceeds 10% of the total assets of the Authority; or

(b) from a person other than an Authorized Institution; or

(c) unless at a meeting of the Board all members of the Board vote in favour of the Authority borrowing the money.

FUNDS OF THE AUTHORITY.

(1) The funds of the Authority consist of –

(a) all monies appropriated by Act for the purposes of carrying out or giving effect to this Act; and

(b) all monies received by the Authority by way of grants and subscriptions; and

(c) all monies received by the Authority from investments or borrowings; and

(d) all monies received by the Authority for goods or services provided by the Authority; and

(e) all fees paid or payable under this Act, the Mining Act1992, the Mining Regulation 1992, Mining (Safety) Act 1977, the Mining (Safety) Regulation 1935, Mining Development Act 1955, the Mining Development Regulation 1957, the Ok Tedi Acts, the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 or the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority
from time to time, after the coming into operation of this Act; and

(f) all rents paid or payable under the Mining Act 1992, the Ok Tedi Acts, the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 or the agreements that are scheduled to that Act, after the coming into operation of this Act; and

(g) any monies paid or payable under this Act in respect of the production levy; and

(h) any monies paid or payable to the Authority under any law (other than this Act) in respect of any fee or levy; and

(i) all fines or penalties paid or payable under this Act, the Mining Act 1992, the Mining Regulation 1992, the Mining(Safety) Act 1977 or the Mining (Safety) Regulation 1935, the Mining Development Act 1955, the Mining Development Regulation 1957, the Ok Tedi Acts, the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 or the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority
from time to time, after the coming into operation of this Act; and

(j) all other monies received by the Authority in the exercise and performance of its powers, functions and duties under this Act.

(2) The Authority is to retain any surplus funds accruing from its operations or activities in a given year, but the Production Levy
for the subsequent year may allow a pro rated rebate equal to the surplus.

(3) The funds of the Authority may be expended only –

(a) in payment or discharge of expenses, obligations and liabilities of the Authority; and

(b) in payment of the remuneration of the staff of the Authority and of allowances to the members of the Board, or members of any committee
of the Board; and

(c) in making investments authorised by this Act; and

(d) for such other purposes as are consistent with the functions of the Authority as the Board, after consultation with the Managing
Director, may determine.

PRODUCTION LEVY.

(1) This Section applies in respect of –

(a) minerals produced from mining by the holder of a mining lease or special mining lease; and

(b) alluvial gold produced from mining, that is or is to be exported.

(2) The Authority may, by notice in the National Gazette, impose a production levy in respect of minerals and alluvial gold in respect
of which this Section applies.

(3) Subject to Section 28(2), the production levy in respect of minerals to which this Section applies is to be imposed at the
rate of 0.25%, or such other rate that does not exceed 0.5%, as is determined by the Minister responsible for treasury matters in
consultation with the Minister for mining matters and the Board, of the assessable income in respect of the project of the relevant
producer or producers of the minerals.

(4) Subject to Section 28(2), the production levy in respect of minerals to which this Section applies is to be imposed at the
rate of 0.25%, or such other rate that does not exceed 0.5%, as is determined by the Minister responsible for treasury matters in
consultation with the Minister for mining matters and the Board, of the value of alluvial gold that is to be exported.

(5) The value of the alluvial gold to which Subsection (4) refers will be taken to be an amount equal to the morning spot price
of gold quoted on the London Metal Exchange on the date of authority being given under the Central Banking (Foreign Exchange and Gold) Regulation 2000 regulation for the alluvial gold to be exported.

(6) The notice under Subsection (2) imposing the production levy is to specify –

(a) any other rate determined by the Authority under Subsection (3) for the production levy in respect of minerals to which this
Section applies; and

(b) any other rate determined by the Authority under Subsection (4) for the production levy in respect of alluvial gold to which
this Section applies; and

(c) the time or times at which the production levy is payable; and

(d) the mechanism for payment to and collection by the Authority of the production levy; and

(e) the amount of any rebates under Subsection (2), and

(f) such other matters as are necessary or convenient for the imposition of the production levy, as determined by the Authority.

(7) The Authority may from time to time amend, vary or replace a notice under Subsection (2) by a further notice in the National
Gazette, to take effect in accordance with that further notice.

(8) A producer of minerals in respect of which this Section applies, and an exporter of alluvial gold in respect of which this Section
applies, shall pay to the Authority the production levy imposed by a notice under Subsection (2), as amended, varied or replaced
under Subsection (7), in accordance with the notice. A notice under Subsection (2) imposing the production levy, as amended,
varied or replaced under Subsection (7), has the force of law by virtue of this Section.

EXPENDITURE.

(1) The Authority shall, not later than three months before the end of each financial year, submit to the Departmental Head of the
Department responsible for treasury matters an operating budget including –

(a) estimates of the receipts and expenditure of the Authority for the next financial year; and

(b) its proposed program (if any) for that financial year,

and identifying any expenditure to be charged against the assets of the Authority, as approved by the Board after consultation with,
and in such form as reasonably required by, the Departmental Head of the Department responsible for treasury matters.

(2) Any disagreement in relation to the appropriateness or quantum of any expenditure item in the operating budget between the Authority
and the Departmental Head of the Department responsible for treasury matters shall first be discussed between them, and if the disagreement
is not resolved not later than one month before the end of the relevant financial year, then the matter is to be referred for determination
by a person nominated by the Papua New Guinea Institute of Accountants, whose decision shall be final, and whose costs are to be
paid by the State.

(3) Where a disagreement referred to in Subsection (2) is not resolved prior to the commencement of the next financial year,
the operating budget of the current financial year will apply for the next financial year and for so long as the disagreement is
unresolved.

LIABILITY TO TAXATION.

For the purposes of Section 24(1) of the IncomeTax Act 1959, the Authority is a public authority constituted under this Act.

“accounting period” means the period commencing on the coming into operation of this Act and ending on the next succeeding balance date, and thereafter
means the period of one year ending on a balance date; and

“balance date” means the close of 31 December; and

“financial statement” in relation to the Authority and a balance date, means –

(a) a balance sheet for the Authority as at the balance date; and

(b) an income and expenditure statement for the Authority in relation to the accounting period ending at the balance date; and

(c) a statement of cash flows for the Authority in relation to the accounting period ending at the balance date,

together with any notes or documents giving information in relation to the balance sheet, income and expenditure statement or statement
of cash flows; and

“generally accepted accounting practise” has the meaning given to it by Section 172 of the Companies Act 1997, as if the Authority were a reporting company within the meaning of that expression in that section and any provision referred to
in that section.

Division 2.

Preparation of Financial Statements.

PREPARATION OF FINANCIAL STATEMENTS.

(1) The Board is to ensure that, within five months after the balance date of the Authority, financial statements that comply with
Subsection (2) are –

(a) completed in relation to the Authority and that balance date; and

(b) dated and signed on behalf of the Board by the Managing Director.

(2) The financial statements of the Authority are to comply with generally accepted accounting practice.

(3) For the purposes of this section, where, in complying with generally accepted accounting practice, the financial statements do
not give a true and fair view of the matters to which they relate, the Board shall add such information and explanations as will
give a true and fair view of those matters.

Division 3.

Accounting Records.

ACCOUNTING RECORDS TO BE KEPT.

(1) The Board is to cause accounting records to be kept that –

(a) correctly record and explain the transactions of the Authority; and

(b) will at anytime enable the financial position of the Authority to be determined with reasonable accuracy; and

(c) The Board is to cause accounting records to be kept that -will enable the Board to ensure that the financial statements of
the Authority comply with Section 34; and

(d) will enable the financial statements of the Authority to be readily and properly audited.

(2) Without limiting Subsection (1), the accounting records are to contain –

(a) entries of money received and spent each day and the matters to which it relates; and

(b) a record of the assets and liabilities of the Authority.

(3) The accounting records are to be kept –

(a) in written form; or

(b) in a form or manner in which they are easily accessible and convertible into written form.

(4) The Authority shall keep accounting records for the current accounting period and for the last five completed accounting periods
of the Authority.

Division 4.

Annual Reports.

PREPARATION OF ANNUAL REPORT.

(1) The Board shall, within five months after each balance date of the Authority, furnish to the Minister an annual report on the
affairs of the Authority during the accounting period ending on that date. A copy of the annual report shall be furnished to the
Departmental Head of the Department responsible for treasury matters.

(2) The Minister shall table the annual report at the first sitting of the Parliament subsequent to his receipt of the annual report.

CONTENTS OF ANNUAL REPORT.

Each annual report of the Authority is to be in writing and dated and is to –

(a) include a report on the performance and management of the operations and activities of the Authority during the accounting period;
and

(b) include financial statements for the accounting period completed and signed in accordance with Section 34; and

(c) describe any change in accounting policies made during the accounting period; and

(d) state particulars of any interest disclosed by a member of the Board under Section 19(1) during the accounting period; and

(e) state, in respect of each member or former member of the Board (including the Managing Director and any former Managing Director),
the total of the remuneration and the value of other benefits received by that member or former member during the accounting period;
and

(f) state the number of employees or former employees of the Authority, not being members of the Board, who, during the accounting period,
received remuneration and any other benefits in their capacity as employees, the value of which in aggregate was or exceeded K50,000
per annum, and is to state the number of such employees or former employees in brackets of K10,000; an

(g) state the total amount of any donations made or commissions paid by the Authority during the accounting period; and

(h) state the names of the persons holding office as members of the Board at the end of the accounting period and the name of any person
who ceased to hold office as member of the Board during the accounting period; and

(i) be signed on behalf of the Board by the Chairman and the Managing Director.

AVAILABILITY OF ANNUAL REPORT.

(1) Any annual report of the Authority that is furnished to the Minister under Section 36 is a public document.

(2) At the request of any person at any time, the Authority is to provide the person with a copy of its most recent annual report
on payment by that person of such fee (if any) as is determined by the Authority.

(3) The fee under Subsection (2) may not exceed K10.00, or such other higher amount as may be prescribed.

Division 5.

Audit.

AUDIT.

(1) Nothing in this Section affects the application to the Authority of the AuditAct 1989.

(2) The Board is to appoint, in respect of each accounting period of the Authority and before, or as soon as practicable after, the
commencement of the relevant accounting period, a member of a reputable accounting firm who is a Registered Company Auditor under
the Accountants Act 1996 and who is ordinarily resident in the country, to be the auditor of the Authority and to audit the financial statements of the Authority
for the relevant accounting period.

(3) The auditor appointed under Subsection (2) shall –

(a) be appointed for a term of one year; and

(b) hold office on such terms and conditions as are determined by the Board; and

(c) is eligible for re-appointment.

(4) Sections 190(2), 192, 193, 198, 199, 200 and 202 of the Companies Act1997 shall apply in relation to an auditor appointed under Subsection (2) as if –

(a) references to a company or a reporting company were references to the Authority, and references to the board of a company were references
to the Board; and

(b) a reference to a director of a company were a reference to a member of the Board; and

(c) a reference to the shareholders of a company were a reference to the Minister; and

(d) the financial statements of the Authority were financial statements to which Section 200 of the Companies Act 1997 applies.

(5) the Authority shall appoint a qualified person to be the Authority’s internal auditor, who shall provide a written audit
report as requested by the Board, but not less often than quarterly, and a copy of each audit report shall be presented to the Minister
and to the Departmental Head of the department responsible for treasury matters.

In any proceedings by or against the Authority, proof is not required, unless evidence is given to the contrary, of –

(a) the constitution of the Authority; or

(b) a resolution of the Board; or

(c) the appointment of a member of the Board; or

(d) the appointment of the Managing Director; or

(e) the presence of a quorum at a meeting of the Board at which a determination is made or an act is done.

SERVICE OF PROCESS.

Any notice, summons, writ or other process required to be served on the Authority may be served by being left at the office of the
Authority or, in the case of a notice, by being sent by post.

AUTHENTICATION OF DOCUMENTS.

Any document requiring authentication by the Authority is sufficiently authenticated with the common seal of the Authority affixed
in accordance with this Act.

APPOINTMENT OF ATTORNEYS.

(1) The Authority may, by instrument under its common seal, appoint a person to act as its attorney for the purpose of doing anything
that the Authority itself might lawfully do.

(2) A person appointed under Subsection (1) may, on behalf of and in the name of the Authority, do any act, exercise any power
and perform any function that he is authorised by the instrument appointing him to do, exercise or perform.

RECOVERY OF MONEY DUE.

Any money due to the Authority (including all funds of the Authority under Section 29(1) may be recovered by the Authority as
a debt.

PROTECTION FROM PERSONAL LIABILITY.

A member of the Board, or a member of a committee of the Board or an officer or employee or servant or agent of the Authority is not
personally liable for any act or default of himself or the Authority done or omitted to be done in good faith in the course of the
activities or operations of the Authority or for the purposes of the Authority.

GENERAL PENALTY.

(1) A person, who acts in contravention of or fails to comply in any respect with a provision of this Act is guilty of an offence
against this Act.

(2) A person that commits an offence against this Act for which no penalty is provided elsewhere in this Act is liable to a penalty
of a fine not exceeding K25,000.00 or to imprisonment for a term not exceeding two years, or to both, and where the offence is a
continuing offence, is further liable to a default penalty of a fine not exceeding K2,500 for each day during which the offence is
committed after conviction.

INFORMATION.

(1) Where, in the opinion of the Board –

(a) any information, book or record in the possession or custody or under the control of a person is or are relevant to the exercise
or performance of the powers or functions of the Authority or to the achievement of the purposes of this Act; and

(b) it is desirable that the information be furnished to the Authority or that the book or record be produced for inspection by the
Authority,

the Authority may issue to the person a written notice to that effect specifying the relevant information, book and record and specifying
the place and time at which any information, books and records are to be furnished or produced to the Authority.

(2) A person who receives a notice under Subsection (1) is to furnish or produce for inspection at the place and at the time
specified in the notice the information, book or records specified in the notice and copies of or extracts from any information,
books and records so furnished or produced may be made and retained by the Authority.

(3) The Authority or its employees may take copies of and extracts from any information, book or record furnished or produced under
Subsection (2).

(4) Subsection (2) does not affect the operation of any law by or under which any information, book or record is to be kept confidential.

(5) Subject to Subsection (6), a person who, without reasonable excuse (proof of which is on him), refuses or fails after receiving
a notice under Subsection (1),to furnish any information or to produce for inspection any book or record, or who furnishes any
information that is false or misleading in a material particular, is guilty of an offence.

Penalty: A fine not exceeding K10,000.00.

Default penalty: A fine not exceeding K1,000.00.

(6) It is a defence to a charge of an offence against Subsection (5) if the person charged proves that the information, book
or record was not relevant to the exercise or performance of the powers or functions of the Authority, to the achievement of the
purposes of this Act or the Mining Act 1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967 and the agreements that are scheduled to that Act, or was not in the possession or custody or under the control of the person at
the time of receipt of the notice under Subsection (1).

FALSE STATEMENTS.

A person who, in a statement made or information furnished under or for the purposes of this Act, makes, without reasonable excuse
(proof of which is on him), a statement, or gives information that is false or misleading in a material particular, is guilty of
an offence.

Penalty: A fine not exceeding K50,000.00.

REGULATIONS.

The Head of State, acting on advice, may make regulations not inconsistent with this Act, prescribing all matters that by this Act
are permitted or required to be prescribed, or that are necessary or convenient to be prescribed for carrying out or giving effect
to this Act and generally for achieving the purposes of this Act, and in particular for prescribing fees and for prescribing penalties
of fines not exceeding K10,000 and default penalties of fines not exceeding K1,000 for infringements of the regulations.

PROSECUTIONS.

(1) Subject to the approval of the Public Prosecutor, the Authority may prosecute any offence against this Act, the Mining Act 1992 the Mining (Safety)Act 1977, the Mining Development Act 1955, the Ok Tedi Acts, the Mining (Bougainville Copper Agreement) Act 1967, or any other Act the administration of which is the responsibility of the Authority from time to time.

(2) A prosecution under this Act shall be made on indictment to the National Court.

(3) In any action brought under this Act by the Authority or against the Authority the court may award costs against any party or
claimant other than the Authority, which costs may be recovered by the Authority as a debt due to the Authority.

(4) Any fine or penalty or any default fine or penalty to be paid by a person as a result of an action brought by the Authority is
to be paid to the Authority and, in addition to any other remedy, may be recovered by the Authority as a debt due to the Authority.

CONFIDENTIALITY.

(1) The Authority must take all reasonable steps to protect, from unauthorised use or disclosure, information given to it in confidence
or in connection with the performance of its functions or the exercise of its powers.

(2) For the purposes of Subsection (1), the disclosure of information as required and permitted by any law or court of competent
jurisdiction is to be taken to be authorised use and disclosure of the information.

(3) For the purposes of Subsection (1), the disclosure of information by a person for the purposes of performing that person’s
functions as an employee of the Authority or as a member of the Board is to be taken to be authorised use and disclosure of the information.

In this Part, “Department” means the Department of Mining as constituted immediately before the coming into operation
of this Act.

TRANSFER OF ASSETS.

(1) The assets described in Schedule 2 (other than land held by the state), which, immediately before the coming into operation of
this Act were occupied, held, owned or used by the Department, and all rights, obligations and liabilities of the Department immediately
before that coming into operation, are, on that coming into operation, transferred to and become the assets, rights, obligations
and liabilities of the Authority.

(2) Any assets other than those described in Schedule 2 that immediately before the coming into operation of this Act were occupied,
held, owned or used by the Department and which in the Board’s opinion are required by the Authority for the purposes of this
Act may be the subject of a written requisition directed to the Secretary of the Department, and a requisition shall not be made
later than 12 months after the coming into operation of this Act.

(3) On receipt of a requisition under Subsection (2), the Secretary shall either –

(a) forthwith give possession of the requisitioned asset to the Authority, which shall then be the property of the Authority, or

(b) forthwith deliver to the Minister and to the Authority a written objection to the requisition, stating his reasons for the objection.

(4) On receipt of a written objection under Subsection (2), the Minister shall decide whether the requisitioned asset should
be transferred to the Authority and shall issue a written direction to the Secretary which the Secretary shall act upon.

(5) Where an asset is transferred to the Authority under Subsection (2) or (3), Subsections (6) and (7) shall apply to that
asset as the circumstances require.

(6) Any register maintained under any Act on which any of the assets transferred under Subsection (1) are registered in the name
of the Department or the State, is taken to be amended as from the coming into operation of this Act by substituting the name of
the Authority for the Department or the State, as the case requires.

(7) Without limitation to Section 32, the transfer to the Authority of the assets, rights, obligations and liabilities of the
Department under Subsection (1) is exempt from any stamp duty, fee, tax, charge or other duty payable under any Act.

(8) Where the assets transferred to the Authority under this section is an interest over government land being a right previously
granted to the Department to occupy of the land, the Authority shall, on the coming into operation of this Act, be deemed to have
been granted the right of occupancy of the land in accordance with the provisions of the Land Act 1996.

(1) As soon as practicable after the coming into operation of this Act, the State is to –

(a) pay to the Authority an amount equal to all cash deposits; and

(b) deliver to the Authority all bank guarantees, insurance company bonds, or other documents,

lodged as security under Section 150 of the Mining Act 1992 before the coming into operation of this Act to the extent that –

(c) such security has not been discharged under and in accordance with the Mining Act 1992; and

(d) such security has not had deducted from it any amount permitted to be deducted from it under and in accordance with the Mining Act 1992; and

(e) such security, or the balance thereof after deduction of any amount permitted to be deducted from it under the Mining Act 1992, has not been remitted to the holder or the former holder of a tenement under and in accordance with the Mining Act 1992,

to be held by the Authority on behalf of the State.

(2) Notwithstanding anything in the Mining Act 1992, the Registrar is not required to remit to the holder or former holder of a tenement any security lodged under Section 150 of the
Mining Act 1992 before the coming into operation of this Act, or the balance of any such security after deduction of any amount permitted to be deducted
from it under the Mining Act 1992, from any cash deposits, bank guarantees, insurance company bonds, or other documents held by the Authority except to the extent
that the relevant security has been paid or delivered to the Authority under Subsection (1).

(3) Notwithstanding anything in the Mining Act 1992, the Managing Director is not required to discharge, wholly or in part, any security lodged under Section 150 of the Mining Act 1992 before the coming into operation of this Act from any cash deposits, bank guarantees, insurance company bonds, or other documents
held by the Authority except to the extent that the relevant security has been paid or delivered to the Authority under Subsection (1).

SAVINGS OF CONTRACTS.

(1) All contracts and agreements (other than contracts of employment) entered into, made with, or addressed to the Department, are,
to the extent that they were, immediately before the coming into operation of this Act, binding on and of full force and effect against
or in favour of the Department on that coming into operation, binding on and of full force and effect against or in favour of the
Authority as fully and effectually as if, instead of the Department, the Authority had been a party to them or bound by them or entitled
to the benefit of them.

(2) The operation of Subsection (1) or Section 55 is not to be regarded –

(a) as a breach of contract or confidence or otherwise as a civil wrong; or

(b) as a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights, obligations
or liabilities; or

(c) as giving rise to any remedy by a party to an instrument or agreement, or as causing or permitting the termination of any instrument
or agreement; or

(d) as releasing any surety or other obligee wholly or in part from any obligation.

APPLICATION OF FACTS.

(1) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever
made or executed, contains a reference, express or implied, to the Department, that reference, on the coming into operation of this
Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Authority.

(2) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever
made or executed, contains a reference, express or implied, to the Secretary, that reference, on the coming into operation of this
Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Managing Director.

(3) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever
made or executed, contains a reference, express or implied, to the Director, that reference, on the coming into operation of this
Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Managing Director.

(4) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever
made or executed, contains a reference, express or implied, to the Departmental Head, in relation to the Department, that reference,
on the coming into operation of this Act, except where the context otherwise requires, is to be read and construed and have effect
as a reference to the Managing Director.

NO EFFECT ON PREVIOUS ACTS AND DECISIONS.

Nothing in this Act affects the validity of any act or decision done or made by the Department (or any officer of the Department),
the Secretary, or the Director before the coming into operation of this Act, and every such act and decision will be taken to be
valid and effectual and to have continuing effect despite anything in this Act.

DEEMING OF PREVIOUS ACTS AND DECISIONS.

To the extend necessary or desirable for the application or the administration of the Mining Act1992, the Mining (Safety) Act 1977, the Mining Development Act 1955, the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act 1967, and the agreements that are scheduled to that Act, after the coming of the operation of this Act –

(a) any act or decision done or made by the Department before the coming into operation of this Act, will be taken to be an act or decision,
as the case requires, of the Authority; and

(b) any act or decision done or made by the Director before the coming into operation of this Act, will be taken to be an act or decision,
as the case requires, of the Managing Director.

(c) by inserting immediately after the definition of “lease for mining purposes” the following new definition: –

“Managing Director“ means the Managing Director of the Authority;

2. Mining Advisory Board (Amendment of Section 11)

(a) the Managing Director, ex officio, who shall be the Chairman; and

(b) the Director of the Department of Environment and Conservation, ex officio, or his nominee appointed in writing; and

(c) the nominee of the Departmental Head of the Department responsible for treasury matters, who must occupy a position in the National
Public Service of a level no higher that Assistant Secretary and must not be a member or alternate member of the Board of the Authority,
ex officio, and

(d) the head of the Department responsible for provincial affairs matters, ex officio, or his nominee appointed by him in writing; and

(e) three employees of the Authority holding management positions, appointed in writing by the Managing Director; and

(f) the nominee of the Departmental Head of the Department responsible for mineral policy matters who must occupy a position in the
National Public Service of a level no lower that Assistant Secretary and must not be a member or alternate member of the Board, ex officio, and

All chattels and equipment held within the Small Scale Mining Branch Office, Wau.

All files, books, publications, digital and paper records and computer software relating to the management and promotion of the mining
sector and the geological resources of Papua New Guinea held within the offices of the following divisions and branches of the Department
of Mining: